The past week can be characterized as positive for the national currency. The hryvnia strengthened to 39.35 per US dollar. Sense Bank says that the strengthening of the hryvnia was preceded by a number of circumstances.
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Thanks to which the hryvnia strengthened
“The strengthening of the hryvnia occurred against the backdrop of a decrease in activity on the international foreign exchange market, which is associated with the weekend in China at the end of the month and the active participation of the National Bank of Ukraine. The regulator continues to sell currency and over the past week sales reached $508 million. It was the combination of these circumstances that led to the strengthening of the hryvnia exchange rate from 39.75 to 39.35,” note the press service of Sense Bank.
According to the forecasts of financiers, the hryvnia will continue to strengthen in the interbank foreign exchange market.
Read: The NBU has lifted foreign exchange restrictions by $4 billion: how will this affect the dollar exchange rate
Bankers' forecasts
“By May 20, businesses must pay quarterly taxes, which, combined with a seasonal decline in activity, may serve as the basis for further strengthening of the national currency. “Next week we may see 39.00 hryvnia per dollar,” bankers predict.
Cash market
The situation on the cash market is different. There, the dollar was trading at 39.80 – 39.90. The stable demand for cash does not allow the rate to decline, and banks are in no hurry to reduce the rate at the cash desks. Therefore, we can hardly expect a depreciation of the hryvnia in exchange offices.
Risks for the hryvnia
As for risks, the main one remains large injections of budget funds into bank liquidity, which in turn fall to the interbank foreign exchange market.
- Dollar Currency
